Yahoo Finance Aristocrat Leisure Ltd's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Aristocrat Leisure Ltd (ARLUF)
Aristocrat Leisure Ltd (ARLUF) recently announced a dividend of $0.36 per share, payable on 2024-07-02, with the ex-dividend date set for 2024-05-23. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Aristocrat Leisure Ltd's dividend performance and assess its sustainability.
What Does Aristocrat Leisure Ltd Do?
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Aristocrat Leisure is an electronic gaming machine manufacturer that sells machines to pubs, clubs, and casinos. The firm is licensed in all Australian states and territories, North American jurisdictions, and essentially every major country. Aristocrat is one of the top three largest players in the space along with International Game Technology and Light & Wonder. Through acquisitions of Plarium and more recently Big Fish, Aristocrat now derives a significant proportion of earnings from the faster growing mobile gaming business.
A Glimpse at Aristocrat Leisure Ltd's Dividend History
Aristocrat Leisure Ltd has maintained a consistent dividend payment record since 2010, with dividends currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Aristocrat Leisure Ltd's Dividend Yield and Growth
As of today, Aristocrat Leisure Ltd currently has a 12-month trailing dividend yield of 1.37% and a 12-month forward dividend yield of 1.53%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Aristocrat Leisure Ltd's annual dividend growth rate was 18.20%, which decreased to 5.00% per year over a five-year horizon, and an impressive 16.80% over the past decade.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. As of 2024-03-31, Aristocrat Leisure Ltd's dividend payout ratio is 0.28, suggesting good retention of earnings for growth and stability. Additionally, Aristocrat Leisure Ltd's profitability rank of 9 out of 10 as of 2024-03-31, combined with consistent net profit in 9 out of the past 10 years, underscores strong profitability prospects.
Growth Metrics: The Future Outlook
Aristocrat Leisure Ltd's growth rank of 9 out of 10 suggests a promising growth trajectory. The company's robust revenue per share and a 3-year revenue growth rate of approximately 14.00% per year, along with a 3-year EPS growth rate of approximately 39.50% per year, and a 5-year EBITDA growth rate of 12.00%, all point to a strong revenue and earnings model that supports sustainable dividend payments.
Concluding Thoughts on Aristocrat Leisure Ltd's Dividend Prospects
The analysis of Aristocrat Leisure Ltd's dividend payments, growth rates, payout ratio, and profitability suggests a positive outlook for current and prospective investors. The company's ability to maintain a healthy payout ratio while fostering growth and profitability presents a compelling case for its dividends' sustainability. Investors looking for stable dividend income might find Aristocrat Leisure Ltd an attractive option. For further exploration, GuruFocus Premium users can utilize the High Dividend Yield Screener to identify similar investment opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
